XRP News Today: Judge Rejects Ripple SEC Settlement Motion Over $125 Million Penalty

A federal judge has rejected a joint motion filed by Ripple Labs and the U.S. Securities and Exchange Commission (SEC) to set aside the $125 million penalty and final ruling on institutional XRP sales. The motion, filed on June 26, 2025, was the second attempt by both parties to bring a legal close to the long-running case. The court ruled that Ripple and the SEC cannot use their settlement agreement to reverse the order imposing a permanent injunction against the company’s institutional XRP sales, which was imposed in 2024.

Judge Analisa Torres denied the motion, stating that it did not meet the “exceptional circumstances” required for a court to modify or vacate a final judgment. The judge emphasized that the parties do not have the authority to agree not to be bound by a court’s final judgment that a party violated an Act of Congress in such a manner that a permanent injunction and a civil penalty were necessary to prevent that party from violating the law again. The court also dismissed arguments that the SEC has dismissed similar or related crypto cases, noting that those lawsuits did not go all the way to a final ruling.

In 2023, Judge Torres ruled that XRP sold on exchanges did not violate securities laws, meaning the cryptocurrency is not a security. However, she found that institutional sales did violate securities laws, leading to the injunction and civil penalty imposed in August 2024. Ripple and the SEC appealed the ruling, with a settlement reached in March 2025 that could only proceed if the judge agreed to set aside her earlier decision. The proposed settlement suggested that $50 million of the $125 million penalty be paid to the SEC, with the remaining $75 million returned to Ripple. However, Judge Torres rejected this proposal, citing the lack of "exceptional circumstances" necessary to justify modifying a final judgment.

Under the ruling, Ripple and the SEC may now choose to either withdraw their appeal or proceed with it and challenge the injunction. Stuart Alderoty, chief legal officer at Ripple, has said the company is yet to decide its next steps with regard to the matter. “With this, the ball is back in our court. The Court gave us two options: dismiss our appeal challenging the finding on historic institutional sales—or press forward with the appeal. Stay tuned. Either way, XRP’s legal status as not a security remains unchanged,” he posted on X.

The judge's decision underscores the importance of finality in court decisions and the need for parties to adhere to the legal process. If the SEC and Ripple wish to end the case, the simplest way is to withdraw their pending appeals. Otherwise, they must appeal the decision through the court system. This ruling adds to the legal uncertainty surrounding Ripple and its XRP sales, as the company continues to face regulatory challenges and potential financial penalties. The decision also highlights the complexities of navigating the legal landscape for cryptocurrency companies, as they seek to comply with evolving regulations and avoid costly penalties.